U.S Secretary of Labor Meets With Both Parties in the West Coast Port Dispute

The white house sent the Secretary of Labor to discuss the contract dispute that has been dragging on for 9 months. The Secretary of Labor Thomas Perez urged all parties to resolve the issue quickly. Further delay can risk tens of thousands of jobs and hundreds of millions of dollars.

This contract dispute is truly affecting ports with the port of Oakland imports falling 39% in January. This is occurring at all U.S. West Coast Ports with production down and a breakdown in vessel schedules.


For more info go to WSJ>>

 

Shippers Starting to Accept Higher Truck Rates

The annual shipper- carrier rate discussion has ended and it has gone very differently then last years. Although it was a bit more convoluted with rising carrier costs, the shippers have finally, yet arduously, accepted these rates. The price of shipping has gone up, one reason being driver shortage/retention rates which has finally led to raising drivers pay (which LoadSmart discussed in the following article). The rise in drivers pay has been taken into account by motor carriers who have altered their rates to make this change less impactful on themselves and putting it on shippers.

Motor Carrier Advice

Motor Carriers are concerned about alienating their big shippers and are strategically raising their rates.The new motor carrier strategy is “lower frequency of accepting shippers initial rates” Those acceptance rates are currently 90% carrier acceptance rates which are expected to drop to 85% in 2015. Motor Carriers are now saying no to shipping a load at 1.30 cents per mile when they can now get 1.75 cents a mile.

Shippers Who Should Worry?

Most affected area are spot rates.

If you are a larger shipper if it will be easier to negotiate prices but the worries are on small shippers who will most likely be taken advantage of.

For more information go to DC Velocity>>